Good points Jockey.
There is a lot of panick here but the fact of the matter is the government have not specifically directed their local land offices to stop letting small company set-ups from buying a small plot with an 'office' on it.
If we all read the Ministry of Interiors statement it is clearly aimed at foreign developers, and there is good reason for their concern about this.
The land office officials are holding a meeting next Tuesday with governement officials to clear up the interpretation, ofcourse until then the land office have to take the tougher line, ala yesterday's meeting.
Extracts from the Ministry statement:
"foreigners working with Thais set up corporation to do property trading by initially buying land and house for the purpose of making it a home or office and subsequently apply to change the usage to for sale or sub-divide and sale to foreigners "
Notice terms like "later sub-dividing land" and "to do property trading"
They do not express concern about the initial "buying land and house for the purpose of making it a home or office"
Then it goes on to say that investigations shall be carried out "in the event that a company limited which has already been set up and apply to own land for the objective of doing business in real estate "
Notice "doing business in real estate", they specify above what they mean by that.
The Ministry statement could easily have read along the lines of 'It has come to our attention that foreign run companies are buying land on the pretence of a company office and as such ALL new foreign land pruchases shall be investigated.
Why does in need to specify 'later sub-dividing for sale for profit' and 'in the business of property trading' and 'those doing business in real estate' ?
We need to wait until it has all been clarified, scaremongering until the facts are out does not help anyone.
Burger
Foreigners can no longer buy houses in Thailand via company.
Burger - your last post is completely spot on and very welcome. I have a feeling by this time next week people will be even more confident than ever that the Land Office are really only after people who are buying land then sub-dividing it for the purpose of real estate. Although in a way this will be a false alarm for some, it should certainly be a wake up call.
House prices have gone up too much in the last couple of years because the price has not been tempered in with the risk factor. Anyone saying there is no risk buying property in Thailand is either uninformed, kidding themselves, a fool or a liar.
Non Thai company owned developers who have already sub divided their land will probably be OK. Anyone who has land and who wishes to sub-divide it in future may have a problem. An opportunity perhaps for more brown envelopes.
House prices have gone up too much in the last couple of years because the price has not been tempered in with the risk factor. Anyone saying there is no risk buying property in Thailand is either uninformed, kidding themselves, a fool or a liar.
Non Thai company owned developers who have already sub divided their land will probably be OK. Anyone who has land and who wishes to sub-divide it in future may have a problem. An opportunity perhaps for more brown envelopes.
The 'tightening up' of farang developers sub-dividing their land started in March and April, the land department had to refer to Prachuap government offices to sign off, it wasn't made too easy.Non Thai company owned developers who have already sub divided their land will probably be OK. Anyone who has land and who wishes to sub-divide it in future may have a problem. An opportunity perhaps for more brown envelopes.
There are several very good reasons why they are tightening up on developers, we know what the reasons are.
The Ministry of Interior statement was clearly aimed at the developers.
How anyone can study the statement and come up with it being aimed at every farang rather than farang developers is beyond me.
Burger
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tuktukmike
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Jim
With respect the panic does not seem to be coming from the Chip on the shoulder posters as you put it.
I have also said before and will repeat again so maybe you understand.
This will not just affect home owners.
It also affects all company owners out here and the many of us who desperatly want to own a home here.
If Malasia can allow it then i think most of us just cant understand why Thailand cant follow the same route.
Mike.
With respect the panic does not seem to be coming from the Chip on the shoulder posters as you put it.
I have also said before and will repeat again so maybe you understand.
This will not just affect home owners.
It also affects all company owners out here and the many of us who desperatly want to own a home here.
If Malasia can allow it then i think most of us just cant understand why Thailand cant follow the same route.
Mike.
tuktukmike wrote:
For the purpose of preempting any actions which may circumvent the laws or as to prevent the purchase of land which may benefit foreigners under the Land Act 74, second paragraph, the Ministry foresees that an additional practice should be applied in the event that a company limited, limited partnership or partnership which has already been set up and apply to own land for the objective of doing business in real estate
They are talking about land and real estate ??
Burger
Mike, how do you come to the conclusion that it will affect all company owners (ie: non-land holding one's) when the government statement said:I have also said before and will repeat again so maybe you understand.
This will not just affect home owners.
It also affects all company owners out here and the many of us who desperatly want to own a home here.
For the purpose of preempting any actions which may circumvent the laws or as to prevent the purchase of land which may benefit foreigners under the Land Act 74, second paragraph, the Ministry foresees that an additional practice should be applied in the event that a company limited, limited partnership or partnership which has already been set up and apply to own land for the objective of doing business in real estate
They are talking about land and real estate ??
Burger
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scorpiolady
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tuktukmike
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Dear Mr Burger
I am sure reading your posts over such a long period that you would not be so naive as to think it would just stop at the land issue.
Last month the Govenor of this province announced a clampdown on farang companys. or did you miss that.
For anyone interested its well worth reading the thread i started last year. Dream Home Or Nightmare.
If you compare the comments made then to the present.
Mike.
I am sure reading your posts over such a long period that you would not be so naive as to think it would just stop at the land issue.
Last month the Govenor of this province announced a clampdown on farang companys. or did you miss that.
For anyone interested its well worth reading the thread i started last year. Dream Home Or Nightmare.
If you compare the comments made then to the present.
Mike.
Mike,
Please try and post without unneccasary digs and petty point scoring, it's a bit childish mate, particularly as its a serious matter. You do seem to be revelling in this, despite your claims that it will affect you too as you may want to buy a house too, sometime in the future.
Anyways, you said this issue (the government statement about land transfers) will not just affect home owners but will affect all foreign run businesses, implying that these other businesses may have their shareholders looked into.
I just want to know where you get this info from.
Are you saying it is your opinion based on the Prachuap governer's announcement in April to look closer at foreign businesses ?
Burger
Please try and post without unneccasary digs and petty point scoring, it's a bit childish mate, particularly as its a serious matter. You do seem to be revelling in this, despite your claims that it will affect you too as you may want to buy a house too, sometime in the future.
Anyways, you said this issue (the government statement about land transfers) will not just affect home owners but will affect all foreign run businesses, implying that these other businesses may have their shareholders looked into.
I just want to know where you get this info from.
Are you saying it is your opinion based on the Prachuap governer's announcement in April to look closer at foreign businesses ?
Burger
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tuktukmike
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EEEErrrrrrmmmm
Yes.
How many times do we have to say we are also not happy with this situation.
You must know we have 2 companys registered out here and of course one will be directly affected should the housing market cease.
The other one will carry on as it has for the last 7 years, but maybe under a new structure.
To be honest burger we all seem to have taken advice from our respected clever lawyers out here as to how easy it is to register a company and i would have thought if the current set up is wrong for land ownership it follows that it is wrong for normal company business.
I will make sure that all our directors are known to us in future and genuine.
My point was that in last months hua hin todat there was an article stating that the Govenor of prachup was ordering a clampdown on farang companys.
To be honest i really am not sure what they want out here, perhaps they only really want the tourist trade.
As for inward investment i dont think we come under this banner unless of course we are registered with the BOI.
Anyway, Always look on the bright side of life.
Yes.
How many times do we have to say we are also not happy with this situation.
You must know we have 2 companys registered out here and of course one will be directly affected should the housing market cease.
The other one will carry on as it has for the last 7 years, but maybe under a new structure.
To be honest burger we all seem to have taken advice from our respected clever lawyers out here as to how easy it is to register a company and i would have thought if the current set up is wrong for land ownership it follows that it is wrong for normal company business.
I will make sure that all our directors are known to us in future and genuine.
My point was that in last months hua hin todat there was an article stating that the Govenor of prachup was ordering a clampdown on farang companys.
To be honest i really am not sure what they want out here, perhaps they only really want the tourist trade.
As for inward investment i dont think we come under this banner unless of course we are registered with the BOI.
Anyway, Always look on the bright side of life.
tuktukmike wrote:
We need to stick to the facts at hand, otherwise everything is merely peoples opinions, and should be given as opinion.
The closer monitoring of businesses is about, tax, work permits, registration for business type etc, it's not to boot us farangs and our money out the country.
When the dust settles I think you will see that they are not stopping/targeting your average family wishing to settle here, with one plot, one house, but the real estate businesses. They actually spelt that out for us in their statement.
Burger
I know I read it, but I did not read that they were going to ask to see financial statements for all the Thai shareholders as you implied earlier.My point was that in last months hua hin today there was an article stating that the Govenor of prachup was ordering a clampdown on farang companys.
We need to stick to the facts at hand, otherwise everything is merely peoples opinions, and should be given as opinion.
The closer monitoring of businesses is about, tax, work permits, registration for business type etc, it's not to boot us farangs and our money out the country.
When the dust settles I think you will see that they are not stopping/targeting your average family wishing to settle here, with one plot, one house, but the real estate businesses. They actually spelt that out for us in their statement.
Burger